IRPEF Changes 2027 in Italy – Planned Amendments and Possible Effects
Status September 2026 – important information:
The measures outlined below correspond to the current discussion status regarding the
Legge di Bilancio 2027. The amendments have not yet been finally approved.
Binding application will only take place after the approval of the Italian Budget Law.
Overview of the planned IRPEF changes from 2027
The Italian Government is currently working on further measures aimed at reducing
the tax burden on individuals. The main objective of the planned reform is in particular
to provide relief for the so-called middle class, meaning medium-income
taxpayers.
Following the already implemented reduction of the second IRPEF tax rate from 35 %
to 33 % for income between €28,000 and €50,000, the reform could potentially be
extended further.
| Measure |
Possible implementation in 2027 |
Affected taxpayers |
|
Extension of the intermediate IRPEF bracket
|
33 % potentially up to €60,000
|
Middle-income taxpayers
|
|
Reduction for lower incomes
|
Possible reduction of the first tax rate
|
Employees, pensioners, self-employed persons
|
|
Thirteenth monthly salary (Tredicesima)
|
Possible substitute tax instead of ordinary IRPEF
|
Employees
|
|
Bonus for working mothers
|
Possible confirmation or extension
|
Working mothers
|
1. Extension of the 33% IRPEF tax rate up to €60,000
The measure currently receiving the most attention concerns the extension of the
intermediate IRPEF tax bracket.
| Income |
Current system |
Possible system from 2027 |
| up to €28,000 |
23 % |
23 % |
| €28,000 - €50,000 |
33 % |
33 % |
| €50,000 - €60,000 |
43 % |
33 % possible
|
| over €60,000 |
43 % |
43 % |
The maximum benefit is currently estimated at approximately
€1,000 per year per taxpayer.
2. Possible tax relief for the thirteenth monthly salary (Tredicesima)
Another measure currently under discussion concerns the tax treatment of the
thirteenth monthly salary.
Instead of ordinary IRPEF taxation, a reduced substitute tax could potentially
be applied.
| Option |
Discussion |
|
Substitute tax
|
10 % or 15 %
|
|
Objective
|
Increase of the net amount received in the December payroll
|
3. Bonus for working mothers and family-related measures
Supporting working mothers remains one of the political priorities.
The existing Bonus Mamme could be confirmed or modified in 2027.
| Area |
Possible amendment |
|
Bonus for working mothers
|
Extension or expansion
|
|
Family support
|
Possible additional support measures
|
4. Further possible measures
- Extension of tax benefits for certain salary increases resulting from collective bargaining agreements
- Tax benefits for overtime and night work
- Support measures for families and the birth rate
- Possible further measures to reduce the tax burden on employment income
Conclusion
The planned IRPEF changes for 2027 would continue the reform path already started:
lower taxation for middle-income taxpayers, increased purchasing power for employees
and additional support for families.